CESTAT upholds 'Hover Board' as 'Motor vehicle' in Customs classification case

The Appellate Tribunal CESTAT NEW DELHI allowed the appeal filed by the Revenue, upholding the classification of the 'Hover Board' as a 'Motor vehicle' under heading 8711. The Tribunal considered the nature of the item, the Harmonisation Committee's decision, and the alignment of the Indian Custom Tariff with the World Customs Organisation's Nomenclature. Consequently, the 'Hover Board' was reclassified from Chapter 95 to Chapter 87, in line with the Original Authority's decision.

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Issues:
Classification of imported goods under Customs Tariff heading 9506 as 'toys' challenged by Revenue for classification as 'Motor Vehicle' under heading 8711.

Analysis:
The appeal before the Appellate Tribunal CESTAT NEW DELHI involved a dispute regarding the classification of imported goods. The respondent-assessee imported goods, including a 'Hover Board,' which was initially classified under CTH 95069990 by the Original Authority. However, the Commissioner (Appeals) changed the classification to Chapter 95, considering it as a toy. The Revenue contended that the 'Hover Board' should be classified under heading 8711 as a 'Motor Vehicle.' The Tribunal heard arguments from both sides and examined the issue in detail.

The ld. AR for the Revenue argued that the 'Hover Board' is essentially a 'Motor vehicle' powered by electric motors for transportation. He referred to a decision by the Harmonisation Committee of the World Customs Organisation, which recommended classifying similar devices under 8711. The ld. AR highlighted that the item had been consistently classified under 8711 in various Custom houses, supporting the contention that it should not be considered a toy under CTH 9506.

On the other hand, the ld. Counsel for the respondent-assessee defended the classification under heading 9506, asserting that the 'Hover Board' should be treated as a toy due to its design and limited speed capabilities. The Tribunal carefully considered the arguments presented by both parties and examined the nature of the disputed item.

After thorough deliberation, the Tribunal observed that Chapter 95 covers toys, while Chapter 87 pertains to motor vehicles. Upon reviewing the characteristics of the 'Hover Board' and the Harmonisation Committee's decision, the Tribunal concluded that the item should be classified as a 'Motor vehicle' under heading 8711. The Tribunal emphasized that the Indian Custom Tariff aligns with the Harmonised System of Nomenclature provided by the World Customs Organisation, making the W.C.O. rulings influential in classification disputes. Consequently, the impugned order was modified, and the 'Hover Board' was classified under heading 8711, in line with the Original Authority's decision.

In conclusion, the appeal filed by the Revenue was allowed, and the classification of the 'Hover Board' as a 'Motor vehicle' under heading 8711 was upheld by the Appellate Tribunal CESTAT NEW DELHI.

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